7.3.0. Contract Address
In Course 3, we identify smart contracts as extra-activities built into a blockchain that require some form of contract between the user and the blockchain so it can be executed without a third party.
Thus, activities like lending and borrowing can be built into a blockchain, and the presence of these smart contracts transform the blockchain into a smartchain.
Each smart contract is located and identified on the blockchain by an address referred to as a contract address. A contract address is simply a combination of computer coded letters, much like a wallet address (public key) of your crypto wallet.
You can easily see the contract address of a token from the token website, the aggregator where the token is listed, or from the blockchain explorer.
Two main characteristics of a contract address:
(a). Sends and Receives token
A contract address can send and receive tokens just as you can send and receive tokens with a wallet address.
(b). Sends and Receives Data
A contract address can send and receive data. Thus, data like a burnt plan, lending and borrowing strategies, can be sent and received with a contract address. This is not obtainable with a wallet address.
Indeed, there is no information that cannot be programmed as smart contracts, making blockchains one of the wonders of invention. It is the reason why Decentralised Finance (DeFi) becomes feasible.